Supermarkets reduce petrol prices

In some welcome cheer for drivers Asda and Tesco have both announced reductions at their petrol pumps, putting prices at their lowest level in almost two years.

Asda revealed that it is cutting its petrol and diesel prices by 1p and 2p respectively, taking the costs to 126.7p a litre for petrol and 132.7p a litre for diesel - its lowest price since July 2012.

Andy Peake, Asda's petrol trading director, said: "We're the only supermarket that has a national price cap on fuel, ensuring drivers know the price they will pay at the pump regardless of where they live."

In further good news, Tesco also said its forecourt prices would be cut by 1p across the country.

Peter Cattell, category director for Tesco petrol stations said: "We'll be cutting the price of petrol and diesel at all of our petrol filling stations by 1p per litre. As Britain's biggest fuel retailer, this means more motorists can make savings and earn Clubcard points at Tesco's petrol filling stations than at any other fuel retailer."

The reductions come ahead of Chancellor George Osborne's Budget on March 19.

RAC head of external affairs Pete Williams said: "Despite traders cautiously buying up fuel stocks last week because of the unrest in Ukraine and thereby threatening to send prices up, the wholesale cost of petrol and diesel actually eased. Major retailers have reacted swiftly to this by passing on savings at the forecourt which is good news for motorists.

"Whether it sparks a price war and further reductions remains to be seen, but hopefully it will keep the price of a litre of petrol under 130p for a little while longer, having first dropped to a three-year low on 19 January."